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trapecia [35]
3 years ago
12

The original cost of a LIFO inventory item is below both replacement cost and net realizable value. The net realizable value les

s normal profit margin is below the original cost. Under the lower of cost or market method for LIFO or retail method inventories, the inventory item should be valued at
Business
1 answer:
serg [7]3 years ago
4 0

Answer:

D. Original cost.

Explanation:

As we know that the inventory should be valued at lower of cost or market value. Also , the market value is the middle amount among the replacement cost, net realizable value, net realizable value - normal profit margin

It can be the replacement cost or net realizable value. We don't have an idea which one is the middle amount

Also, if the original cost is less than the market cost so we assume that the inventory should be valued at original cost

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By participating in as many newsworthy events as possible, such as visiting orphanages or disaster sites, candidates are often a
nikdorinn [45]
I would say in these cases where candidates are being seen at disaster sites or orphanages for example, they are attempting to catch media attention for their apparent humanitarian qualities and thus garner support amongst the voters.
6 0
3 years ago
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:
stiv31 [10]

Answer:

a) Determination of the amount of the amortization, depletion, or impairment for the current year for each item:

   Item                 Impairment   Amortization    Depletion

                             Expense         Expense          Expense

a. Timber rights                                                  $304,000

b. Goodwill        $ 1,110,000

c. Patent                                     $456,000

b) Adjusting Journal Entries:

Date       Account Titles                                   Debit         Credit

Dec. 31   Depletion Expense -Timber rights  $304,000

              Accumulated Depreciation - Timber rights     $304,000

To record the depletion expense for Timber rights.

Dec. 31   Goodwill Impairment Loss             $1,110,000

              Accumulated Goodwill Impairment                $1,110,000

To record the impairment loss for Goodwill

Dec. 31   Amortization Expense - Patent     $456,000

              Accumulated Amortization - Patent                 $456,000

To record the amortization expense for Patent.

Explanation:

a) Data and Calculations:

February 22, Purchase of Timber rights $1,140,000

Estimated stand of timber = 6,000,000

Used board feet of timber = 1,600,000

Units of product Depletion

= $1,140,000/6,000,000 * 1,600,000

= $304,000

December 31, Goodwill impairment

= $1,110,000

April 3 Patent:

Cost incurred $9,120,000

Amortization per annum = $608,000 ($9,120,000/15)

Amortization for the current year = $456,000 ($608,000 * 3/4)

8 0
3 years ago
You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre
Fynjy0 [20]

Answer:

The correct answer is $7,056.46

Explanation:

Giving the following information:

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?

Final value= 55,000*25= 1,375,000

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

5 0
3 years ago
1. Understanding opportunity costYou work as an assistant coach on the university basketball team and earn $15 per hour. One day
Gwar [14]

Answer:

The correct answer is letter "D": $24.

Explanation:

Opportunity cost can be defined as the cost of the best next available option after taking another decision in regards to a situation. It is also the return that the chosen option provides compared to the return that could have provided the option that was forgone.

In this case, choosing to go to the local carnival will represent losing one hour of working as a coach assistant ($15). Besides, as there is a $9 admission fee to the carnival, you will need to spend that money. Thus, the total opportunity cost of going to the carnival instead of working is $24 (<em>$15+$9=$24</em>).

6 0
3 years ago
All other things being equal, supply curves slope upwards from left to right because
Svetach [21]

In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases). ... A change in any of these conditions will cause a shift in the supply curve.

3 0
3 years ago
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